BARTRAM PARI

BARTRAM PARI< Community Development District

April 25, 2018

April 17, 2018

Bartram Park Community Development District 475 West Town Place, Suite 114, St. Augustine, FL 32092

Phone: 904-940-5850 - Fax: 904-940-5899

Board of Supervisors Bartram Park Community Development District

Dear Board Members:

The meeting of the Board of Supervisors of the Bartram Park Community Development District will be held Wednesday, April 25, 2018 at 11 :00 a.m. at the offices of England-Thims and Miller, Inc., 14775 Old St. Augustine Road, Jacksonville Florida. Following is the advance agenda for this meeting:

I. Roll Call II. Public Comment

III. Organizational Matters A. Consideration of Resumes to Fill Vacant Seat B. Oath of Office for Newly Appointed Supervisor C. General Information for New Supervisor D. Consideration of Resolution 2018-03, Election of Officers

IV. Approval of Minutes of the December 19, 2017 Special Meeting V. Approval of Minutes of the January 24, 2018 Meeting

VI. Acceptance of Financial Audit of Fiscal Year 2017 VII. Consideration of Resolution 2018-04, Setting a Date for Public Hearing For

Budget Adoption and Approving Fiscal Year 2019 Proposed Budget VIII. Other Business

IX. Staff Reports A. Attorney B. Engineer - Update of Development in Bartram Park and Surrounding

Vicinity C. Manager

X. Audience Comments/ Supervisor's Requests XI. Financial Reports

A. Balance Sheet and Statement of Revenues & Expenditures for the Period Ending December 31, 2017

B. Assessment Receipt Schedules C. Approval of Check Register

XII. Next Scheduled Meeting -April 25, 2018 @ 11 :00 a.m. at the Office of England, Thims & Miller located at 14775 Old St. Augustine Road, Jacksonville, Florida 32258

XIII. Adjournment

The third order of business is organizational matters. At this time the Board can consider resumes that were submitted by interested residents to fill the unexpired term of office. The newly appointed supervisor will subscribe to an oath of office and the Board can then consider appointing the newly appointed supervisor as assistant secretary of the District by adopting Resolution 2018-03, which is enclosed for your review .

The fourth order of business is the approval of December 19, 2017 special meeting minutes. A copy of the minutes is enclosed for your review.

The fifth order of business is the acceptance of January 24, 2018 minutes. A copy of the minutes is enclosed for you review.

The sixth order of business is the acceptance of financial audit for fiscal year 2017. A copy of the audit is enclosed for your review.

The seventh order of business is consideration of resolution 2018-04, setting a date of public hearing for budget adoption and approving fiscal year 2019 proposed budget. A copy of the resolution is enclosed for your review.

Listed under engineer reports is an update of development m Bartram Park and surrounding vicinity.

Listed under financial reports is the balance sheet and statement of revenues & expenditures, assessment receipt schedules, and the check register for your review.

We look forward to seeing you at the special meeting. In the meantime, if you have any questions, please do not hesitate to call us at (904) 940-5850.

Sincerely,

\E:: Manager

Cc: Wes Haber Jennifer Gillis Gabriel McKee Darrin Mossing

2

Matt Maggiore Karen Jusevitch Jennifer Kilinski Jere Earlywine

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Bartram Park Community Development District

Agenda

Wednesday April 25, 2018 11:00 a.m.

I. Roll Call

II. Public Comment

III. Organizational Matters

England Thims & Miller 14775 Old St. Augustine Road

Jacksonville, Florida 32258 bartramparkcdd.com

Call In# 1-800-264-8432 Code 768004

A. Consideration of Resumes to Fill Vacant Seat

B. Oath of Office for Newly Appointed Supervisor

C. General Information for New Supervisor

D. Consideration of Resolution 2018-03, Election of Officers

IV. Approval of Minutes of the December 19, 2017 Special Meeting

V. Approval of Minutes of the January 24, 2018 Meeting

VI. Acceptance of Financial Audit of Fiscal Year 201 7

VII. Consideration of Resolution 2018-04, Setting a Date for Public Hearing For Budget Adoption and Approving Fiscal Year 2019 Proposed Budget

VIII. Other Business

IX. Staff Reports A. Attorney

B. Engineer - Update of Development in Bartram Park and Surrounding Vicinity

C. Manager

X. Audience Comments/ Supervisor's Requests

XI. Financial Rep01is A. Balance Sheet and Statement of Revenues & Expenditures for the Period

Ending December 31, 2017

B. Assessment Receipt Schedules

C. Approval of Check Register

XII. Next Scheduled Meeting -April 25, 2018 @ 11 :00 a.m. at the Office of England, Thims & Miller located at 14775 Old St. Augustine Road, Jacksonville, Florida 32258

XIII. Adjournment

THIRD ORDER OF BUSINESS

Donald H. Smith 15011 Venosa Circle Jacksonville FL 32258

EMPLOYMENT STATUS: Retired

EXPERIENCE:

RESUME

904 333-9840 donj ud65@gmai l. com

Financial and Sales experience in a career that spans over 50 years, including Management, Accounting, Retail, and Customer Service.

Board of Realtors/ MLS Association management background as well as Private Business Owner experience.

Vice President and President of the Laurel Lakes Homeowners Condo Association, Richmond VA. for 4 years.

*****

I hereby submit this Resume for the purpose of being considered for a seat on the Bartram Park Community Development District board.

Donald H. Smith

RESOLUTION 2018-03

A RESOLUTION DESIGNATING OFFICERS OF THE BARTRAM PARK COMMUNITY DEVELOPMENT DISTRICT

WHEREAS, the Board of Supervisors of the Bartram Park Community Development

District at a regular business meeting held on January 24, 2018 desires to elect the below recited

persons to the offices specified.

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF THE BARTRAM PARK COMMUNITY DEVELOPMENT DISTRICT:

1. The following persons were elected to the offices shown, to wit:

Chairman

Vice-Chairman

Secretary

Treasurer

Assistant Treasurer

Assistant Secretary

Assistant Secretary

PASSED AND ADOPTED THIS 24TH DAY OF JANUARY 2018

Chairman/ Vice Chairman

Secretary / Assistant Secretary

FOURTH ORDER OF BUSINESS

MINUTES OF MEETING BARTRAM PARK COMMUNITY DEVELOPMENT DISTRICT

A special meeting of the Board of Supervisors of the Bartram Park Community

Development District was held on Tuesday, December 19, 2017 at 11:00 a.m. at the Offices of

Offices of England-Thims & Miller, Inc. 14775 Old St. Augustine Road, Jacksonville, Florida

32258.

Present and constituting a quorum were:

Pat Evert James Griffith Tim Brown Joan Nero

Also present were:

Jim Oliver Wes Haber Matt Maggiore Gary Horvath

Chairman Vice Chairman Supervisor Supervisor

District Manager District Counsel (by phone) District Engineer Environmental Services (by phone)

FIRST ORDER OF BUSINESS Roll Call Mr. o·liver called the meeting to order at 11:00 a.m.

SECOND ORDER OF BUSINESS There were no audience comments.

THIRD ORDER OF BUSINESS

Public Comment

Consideration of Partial Release of and Amendment to Regulatory Conservation Easement

Mr. Haber stated a copy of the document is included in your agenda package. This is

something that doesn't really impact the District directly in that, the District has previously

signed and is a party to a previously recorded conservation easement. A conservation easement

is essentially a document where a piece of property that the CDD owns grants an easement to the

St. Johns River Water Management District and it essentially says that property will be

conserved based on the terms described in the easement. The easement specifies that the

December 19, 2017 Bartram Park CDD

property cannot be constructed upon or used in any way that materially impacts the natural

conservation state of the property.

Mr. Ga,y Horvath joined the meeting by phone.

Mr. Haber stated the CDD was a party to a prior conservation easement as was, the

Developer. Presently, the Developer has work it is doing as part of its project, there is an area

that is subject to a conservation easement that may need removed, so that way they are able to

impact the area that would otherwise be subject to the conservation easement. The area that

would be impacted is not owned by the CDD. The Developer made a request to the St. Johns

River Water Management District to release the conservation easement to the area that needs to

be impacted. The St. Johns River Water Management District appears agreeable to allowing

that, as long as, the Developer agrees to substitute a separate piece of conservation property for

the property that would now be impacted. The CDD doesn't own the property that would be

impacted, nor does the CDD own the property that would be replaced. The reason why the CDD

is being asked to participate in this process is because of the earlier conservation easement that

the CDD is a party to relates to the easement, so the St. Johns River Water Management District

is asking that the CDD sign off on the amendment.

Mr. Maggiore stated this is the south end of Bartram Park Boulevard. This is the

Development in question. It would be releasing these two peach colored areas and replacing it

with this green area.

Mr. Horvath stated the bigger area is where the outfall pipe from the stormwater pond is

going. The easement does not allow any drainage structures in it currently, so we are just

releasing that 2,755 square feet area to be removed from the easement, so we can put discharge

pipe through it. The smaller one is being asked for because there is not enough room to get the

road in between the stormwater pond and the conservation area without taking that 58 square

foot. Most of these areas are uplands.

On MOTION by Mr. Griffith seconded by Mr. Brown with all in favor the Partial Release of and Amendment to Regulatory Conservation Easement was approved with Authorization for Chair & District Counsel to Review & Sign with no substantive changes.

FOURTH ORDER OF BUSINESS Other Business

2

December 19, 2017 Bartram Park COD

Mr. Oliver stated some of you may have received an email from a resident who was

concerned with some drainage matters. Wes was brought into the matter, as well as, Matt.

Mr. Griffith stated the gentleman is one of my neighbors and his property abuts the

culvert on the outside of the fence. His concern is that the culvert is not draining as it was prior

to Hurricane Irma coming through. The emails that I have seen go back and forth say that it is

draining properly.

Mr. Oliver stated one thing we want to address early on in this is you are a form of

limited government and you have jurisdiction over those matters that are related to CDD owned

improvements. The first thing we wanted to do was to determine if this was a CDD matter. Matt

has done some research on ownership of these lands.

Mr. Maggiore stated I looked at the Duval County Property Appraisers database and it

does show that Montevilla at Bartram Lakes Association owns that property in question. The

Association also owns the stormwater pond. The stormwater system from Montevilla outfalls

through a large box culvert to this area in question and then there is another box culvert

underneath the road. The property is not owned by the CDD but by the HOA.

Mr. Griffith stated John Dodson came over to the Mattamy side and they inspected all of

this and he says the water is flowing.

Mr. Oliver stated Dennis Mathis has asked for his resignation to be accepted.

On MOTION by Ms. Evert seconded by Mr. Griffith with all in favor the Resignation from Mr. Dennis Mathis was accepted.

Mr. Oliver stated we have put together a notice of vacancy for his position and we will

publish it in the newspaper and also get it in all of the applicable websites for the District. We

will gather resumes or letters of interest and then the four of you will make the decision on who

the fifth supervisor will be. This seat expires in November of 2018.

FIFTH ORDER OF BUSINESS Audience Comments/Supervisor's Requests

There being none, the next item followed.

3

December 19, 2017 Bartram Park CDD

SIXTH ORDER OF BUSINESS Next Scheduled Meeting - January 24, 2018 @ 11:00 a.m. at the Office of England, Thims & Miller located at 14775 Old St. Augustine Road, Jacksonville, Florida 32258

Mr. Oliver stated the next scheduled meeting is January 24, 2018 @ 11:00 a.m. at the

Offices of England Thims & Miller located at 14775 Old St. Augustine Road, Jacksonville,

Florida 32258.

SEVENTH ORDER OF BUSINESS Adjournment

On MOTION by Ms. Evert seconded by Ms. Nero with all in favor the Meeting was adjourned.

Secretary/ Assistant Secretary Chairman/Vice Chairman

4

FIFTH ORDER OF BUSINESS

MINUTES OF MEETING BARTRAM PARK COMMUNITY DEVELOPMENT DISTRICT

The regular meeting of the Board of Supervisors of the Bartram Park Community

Development District was held on Wednesday, January 24, 2018 at 11 :00 a.m. at the Offices of

Offices of England-Thims & Miller, Inc. 14775 Old St. Augustine Road, Jacksonville, Florida

32258.

Present and constituting a quorum were:

Pat Evert James Griffith Tim Brown Joan Nero

Also present were:

Jim Oliver Wes Haber

FIRST ORDER OF BUSINESS

Chairman Vice Chairman (by phone) Supervisor Supervisor

District Manager District Counsel (by phone)

Roll Call Mr. Oliver called the meeting to order at 11 :00 a.m.

SECOND ORDER OF BUSINESS Public Comment There were no members of the public in attendance.

THIRD ORDER OF BUSINESS Organizational Matters A. Consideration of Resumes to Fill Vacant Seat Mr. Oliver stated we did publish notice of this vacancy. We also provided it to John

Dodson to have it put on the website and the HOA sites. There haven't been any applicants yet.

We will put it back on the agenda for the next meeting. Currently, we do not have a Vice

Chairperson if you would like to nominate someone.

On MOTION by Ms. Nero seconded by Ms. Evert with all in favor to Appoint Mr. James Griffith as Vice Chairman was approved.

Januaiy 24, 2018 Bartram Park CDD

FOURTH ORDER OF BUSINESS Approval of Minutes of the October 25, 2017 Meeting

Mr. Oliver stated included in your agenda package is a copy of the minutes of the

October 25, 2017 meeting. Are there any additions, corrections or deletions?

On MOTION by Mr. Brown seconded by Ms. Evert with all in favor the Minutes of the October 25, 2017 Meeting were approved.

FIFTH ORDER OF BUSINESS Acceptance of Minutes of the October 25, 2017 Audit Committee Meeting

Mr. Oliver stated included in your agenda package is a copy of the minutes of the

October 25, 2017 audit committee meeting. Are there any additions, corrections or deletions?

On MOTION by Ms. Nero seconded by Ms. Evert with all in favor the Minutes of the October 25, 2017 Audit Committee Meeting were accepted.

SIXTH ORDER OF BUSINESS Acceptance of Audit Engagement Letter with Grau & Associates for the FY 17 Financial Audit

Mr. Oliver stated included in your agenda package is a copy of the engagement letter

with Grau & Associates to perform the audit for Fiscal Year 2017. The engagement letter shows

a fee of $3,800 and you budgeted $4,680 for this item, so you are in good shape.

On MOTION by Ms. Evert seconded by Mr. Brown with all in favor the Audit Engagement Letter with Grau & Associates for the Fiscal Year 201 7 Financial Audit was accepted.

SEVENTH ORDER OF BUSINESS Other Business There being none, the next item followed.

EIGHTH ORDER OF BUSINESS Staff Reports A. Attorney There being none, the next item followed.

B. Engineer There being none, the next item followed.

2

Januaiy 24, 2018 Bartram Park CDD

C. Manager Mr. Oliver stated at our next meeting on April 25, 2018, I will bring the proposed budget

for Fiscal Year 2019.

NINTH ORDER OF BUSINESS Audience Comments/Supervisor's Requests

There being none, the next item followed.

TENTH ORDER OF BUSINESS Financial Reports

A. Balance Sheet and Statement of Revenues & Expenditures for the Period Ending December 31, 2017

Mr. Oliver stated included in your agenda package is a copy of the balance sheet and

income statement dated December 31, 2017.

B. Assessment Receipt Schedules

Mr. Oliver stated included in your agenda package are copies of the assessment receipt

schedules.

C. Approval of Check Register

Mr. Oliver stated included in your agenda package is a copy of the check register. Ms.

Evert was reimbursed for FedEx delivery costs incurred for official CDD business. She will

recuse herself from voting for this item.

On MOTION by Mr. Brown seconded by Ms. Nero with Ms. Evert abstaining because of conflict of interest on Check #839 in the amount of $9.28 was approved.

Mr. Haber stated we will have Pat complete a conflict of interest form and attach it to the

minutes of this meeting.

On MOTION by Ms. Eve1i seconded by Ms. Nero with all in favor the Balance of the Check Register Minus Check #839 was approved.

3

Januaiy 24, 2018 Ba1tram Park CDD

ELEVENTH ORDER OF BUSINESS Next Scheduled Meeting - April 25, 2018 @ 11:00 a.m. at the Office of England, Thims & Miller located at 14775 Old St. Augustine Road, Jacksonville, Florida 32258

Mr. Oliver stated the next scheduled meeting is April 25, 2018 @ 11 :00 a.m. at the

Offices of England Thims & Miller located at 14775 Old St. Augustine Road, Jacksonville,

Florida 32258.

TWELFTH ORDER OF BUSINESS Adjournment

On MOTION by Ms. Nero seconded by Ms. Evert with all in favor the Meeting was adjourned.

Secretary/ Assistant Secretary Chairman/Vice Chairman

4

FORM 88 MEMORANDUM OF VOTING CONFLICT FOR COUNTY, MUNICIPAL, AND OTHER LOCAL PUBLIC OFFICERS

LAST NAME-FIRST NAME-MIDDLE NAME NAME OF BOARD, COUNCIL, COMMISSION, AUTHORITY, OR COMMITTEE

Patricia Evert Bartram Park COD MAILING ADDRESS THE BOARD, COUNCIL, COMMISSION, AUTHORITY OR COMMITTEE ON

15015 Venosa Circle WHICH I SERVE IS A UNIT OF:

CITY COUNTY □ CITY □ COUNTY ii{ OTHER LOCAL AGENCY

Jacksonville Duval NAME OF POLITICAL SUBDIVISION:

DATE ON WHICH VOTE OCCURRED MY POSITION IS: January 24, 2018 elf ELECTIVE □ APPOINTIVE

WHO MUST FILE FORM 88

This form is for use by any person serving at the county, city, or other local level of government on an appointed or elected board, council, commission, authority, or committee. It applies to members of advisory and non-advisory bodies who are presented with a voting conflict of interest under Section 112.3143, Florida Statutes.

Your responsibilities under the law when faced with voting on a measure in which you have a conflict of interest will vary greatly depending on whether you hold an elective or appointive position. For this reason, please pay close attention to the instructions on this form before completing and filing the form.

INSTRUCTIONS FOR COMPLIANCE WITH SECTION 112.3143, FLORIDA STATUTES A person holding elective or appointive county, municipal, or other local public office MUST ABSTAIN from voting on a measure which would inure to his or her special private gain or loss. Each elected or appointed local officer also MUST ABSTAIN from knowingly voting on a measure which would inure to the special gain or loss of a principal (other than a government agency) by whom he or she is retained (including the parent, subsidiary, or sibling organization of a principal by which he or she is retained); to the special private gain or loss of a relative; or to the special private gain or loss of a business associate. Commissioners of community redevelopment agencies (CRAs) under Sec. 163.356 or 163.357, F.S., and officers of independent special tax districts elected on a one-acre, one-vote basis are not prohibited from voting in that capacity.

For purposes of this law, a "relative" includes only the officer's father, mother, son, daughter, husband, wife, brother, sister, father-in-law, mother-in-law, son-in-law, and daughter-in-law. A "business associate" means any person or entity engaged in or carrying on a business enterprise with the officer as a partner, joint venturer, coowner of property, or corporate shareholder (where the shares of the corporation are not listed on any national or regional stock exchange).

* * * * * * * ELECTED OFFICERS: In addition to abstaining from voting in the situations described above, you must disclose the conflict:

PRIOR TO THE VOTE BEING TAKEN by publicly stating to the assembly the nature of your interest in the measure on which you are abstaining from voting; and

WITHIN 15 DAYS AFTER THE VOTE OCCURS by completing and filing this form with the person responsible for recording the minutes of the meeting, who should incorporate the form in the minutes.

* * * * * * *

APPOINTED OFFICERS: Although you must abstain from voting in the situations described above, you are not prohibited by Section 112.3143 from otherwise participating in these matters. However, you must disclose the nature of the conflict before making any attempt to influence the decision, whether orally or in writing and whether made by you or at your direction.

IF YOU INTEND TO MAKE ANY ATTEMPT TO INFLUENCE THE DECISION PRIOR TO THE MEETING AT WHICH THE VOTE WILL BE TAKEN:

• You must complete and file this form (before making any attempt to influence the decision) with the person responsible for recording the minutes of the meeting, who will incorporate the form in the minutes. (Continued on page 2)

CE FORM 88 - EFF. 11/2013 PAGE 1 Adopted by reference in Rule 34-7.010(1)(f), F.A.C.

APPOINTED OFFICERS (continued) • A copy of the form must be provided immediately to the other members of the agency.

• The form must be read publicly at the next meeting after the form is filed.

IF YOU MAKE NO ATTEMPT TO INFLUENCE THE DECISION EXCEPT BY DISCUSSION AT THE MEETING:

• You must disclose orally the nature of your conflict in the measure before participating .

• You must complete the form and file it within 15 days after the vote occurs with the person responsible for recording the minutes of the meeting, who must incorporate the form in the minutes . A copy of the form must be provided immediately to the other members of the agency, and the form must be read publicly at the next meeting after the form is filed .

DISCLOSURE OF LOCAL OFFICER'S INTEREST

l ,_P_a_t_ri_c_ia_E_v_e_rt ____________ , hereby disclose that on_J_a_n_u_a_ry_2_4 ____________ , 20 ~ :

(a) A measure came or will come before my agency which (check one or more)

L inured to my special private gain or loss; inured to the special gain or loss of my business associate , . ______________________ _

inured to the special gain or loss of my relative, ___________________________ _

inured to the special gain or loss of-------------------------------' by

whom I am retained ; or

inured to the special gain or loss of _____________________________ , which

is the parent subsidiary , or sibling organization or subsidiary of a principal which has retained me.

(b) The measure before my agency and the nature of my conflicting interest in the measure is as follows:

If disclosure of specific information would violate confidentiality or privilege pursuant to law or rules governing attorneys, a public officer, who is also an attorney, may comply with the disclosure requirements of this section by disclosing the nature of the interest in such a way as to provide the public with notice of the conflict.

Date~\ QC:, I ?-D ('it NOTICE : UNDER PROVISIONS OF FLORIDA STATUTES §112 .317, A FAILURE TO MAKE ANY REQUIRED DISCLOSURE CONSTITUTES GROUNDS FOR AND MAY BE PUNISHED BY ONE OR MORE OF THE FOLLOWING : IMPEACHMENT, REMOVAL OR SUSPENSION FROM OFFICE OR EMPLOYMENT, DEMOTION, REDUCTION IN SALARY, REPRIMAND, OR A CIVIL PENALTY NOT TO EXCEED $10,000.

CE FORM BB - EFF. 11/2013 PAGE 2 Adopt ed by reference in Rule 34-7 .010(1)(f), F.A.C.

SIXTH ORDER OF BUSINESS

BARTRAM PARK COMMUNITY DEVELOPMENT DISTRICT

CITY OF JACKSONVILLE, FLORIDA FINANCIAL REPORT

FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017

BARTRAM PARK COMMUNITY DEVELOPMENT DISTRICT CITY OF JACKSONVILLE, FLORIDA

TABLE OF CONTENTS

INDEPENDENT AUDITOR'S REPORT

MANAGEMENT'S DISCUSSION AND ANALYSIS

BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements:

Statement of Net Position Statement of Activities

Fund Financial Statements: Balance Sheet - Governmental Funds Reconciliation of the Balance Sheet of Governmental Funds to the

Statement of Net Position Statement of Revenues, Expenditures and Changes in Fund Balances -

Governmental Funds Reconciliation of the Statement of Revenues, Expenditures and Changes in

Fund Balances of Governmental Funds to the Statement of Activities Notes to the Financial Statements

REQUIRED SUPPLEMENTARY INFORMATION Schedule of Revenues, Expenditures and Changes in Fund Balances -

Budget and Actual - General Fund Notes to Required Supplementary Information

INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH

Page

1-2

3-6

7 8

9

10

11

12 13-21

22 23

GOVERNMENT AUDITING STANDARDS 24-25

INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH THE REQUIREMENTS OF SECTION 218.415, FLORIDA STATUTES, REQUIRED BY RULE 10.556(10) OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA 26

MANAGEMENT LETTER REQUIRED BY CHAPTER 10.550 OF THE RULES OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA 27-28

fj Grau & Associates CE RTIFIED PUBLI C ACCO UNTANTS INDEPENDENT AUDITOR'S REPORT

To the Board of Supervisors Bartram Park Community Development District City of Jacksonville, Florida

Report on the Financial Statements

2700 North Military Trail • Suite 350 Boca Raton, Florida 33431 (561) 994-9299 • (800) 299-4728 Fax (561) 994-5823 www.graucpa .com

We have audited the accompanying financial statements of the governmental activities and each major fund of Bartram Park Community Development District, City of Jacksonville, Florida ("District") as of and for the fiscal year ended September 30, 2017, and the related notes to the financial statements, which collectively compr ise the District's basic financial statements as listed in the table of contents .

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design , implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error .

Auditor's Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government . Auditing Standards, issued by the Comptroller General of the United States . Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor 's judgment , including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity 's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management , as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions .

pinions

our opinion , the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of the District as of September 30, 2017, and the respective changes in financial position thereof for the fiscal year then ended in accordance with accounting principles generally accepted in the United States of America .

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and budgetary comparison information be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated March 27, 2018, on our consideration of the District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District's internal control over financial reporting and compliance.

Report on Other Legal and Regulatory Requirements

We have also issued our report dated March 27, 2018, on our consideration of the District's compliance with the requirements of Section 218.415, Florida Statutes, as required by Rule 10.556(10) of the Auditor General of the State of Florida. The purpose of that report is to provide an opinion based on our examination conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants.

March 27, 2018

2

MANAGEMENT'S DISCUSSION AND ANALYSIS

Our discussion and analysis of Bartram Park Community Development District, City of Jacksonville, Florida ("District") provides a narrative overview of the District's financial activities for the fiscal year ended September 30, 2017. Please read it in conjunction with the District's Independent Auditor's Report, basic financial statements, accompanying notes and supplementary information to the basic financial statements.

FINANCIAL HIGHLIGHTS

• The liabilities of the District exceeded its assets plus deferred outflows of resources at the close of the most recent fiscal year resulting in a net position deficit balance of ($24,342,853).

• The change in the District's total net position in comparison with the prior fiscal year was $934,494, an increase. The key components of the District's net position and change in net position are reflected in the table in the government-wide financial analysis section.

• At September 30, 2017, the District's governmental funds reported combined ending fund balances of $2,714,771, a decrease of ($37,445) in comparison with the prior fiscal year. The total fund balance is non-spendable for prepaid items, restricted for debt service and capital projects, and the remainder is unassigned fund balance which is available for spending at the District's discretion.

OVERVIEW OF FINANCIAL STATEMENTS

This discussion and analysis are intended to serve as the introduction to the District's basic financial statements. The District's basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves.

Government-Wide Financial Statements

The government-wide financial statements are designed to provide readers with a broad overview of the District's finances, in a manner similar to a private-sector business.

The statement of net position presents information on all the District's assets, deferred outflows of resources, liabilities, and deferred inflows of resources with the residual amount being reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the District is improving or deteriorating.

The statement of activities presents information showing how the government's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods.

The government-wide financial statements include all governmental activities that are principally supported by special assessment revenues. The District does not have any business-type activities. The governmental activities of the District include the general government (management) and maintenance functions.

Fund Financial Statements

A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The District, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The District has one fund category: governmental funds.

3

OVERVIEW OF FINANCIAL STATEMENTS (Continued)

Governmental Funds

Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a District's near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the District's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The District maintains three governmental funds for external reporting. Information is presented separately in the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund, debt service fund and capital projects fund all of which are considered major funds.

The District adopts an annual appropriated budget for its general fund. A budgetary comparison schedule has been provided for the general fund to demonstrate compliance with the budget.

Notes to the Financial Statements

The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.

GOVERNMENT-WIDE FINANCIAL ANALYSIS

In the case of the District, liabilities exceeded assets plus deferred outflows of resources at the close of the most recent fiscal year.

The District's net position reflects its investment in capital assets (e.g. land, land improvements, and infrastructure); less any related debt used to acquire those assets that is still outstanding. These assets are used to provide services to residents; consequently, these assets are not available for future spending. Although the District's investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.

The restricted portion of the District's net position represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position may be used to meet the District's other obligations.

4

GOVERNMENT-WIDE FINANCIAL ANALYSIS (Continued) I

Key components of the District's net position are reflected in the following table:

NET POSlllON SEPTEMBER 30,

2017 2016

Current and other assets $ 2,716,453 $ 2,758,458 Capital assets, net of depreciation 10,013,918 10,487,324

Total assets 12,730,371 13,245,782 Deferred outflows of resources 204,592 216,065 Total assets and deferred outflows 12,934,963 13,461,847 Current liabilities 759,110 705,935 Long-term liabilities 36,518,706 38,033,259

Total liabilities 37,277,816 38,739,194 Net position

Net imestment in capital assets (26,258,071) (27,329,870) Restricted 1,767,713 1,932,485 Unrestricted 147,505 120,038

Total net position $ (24,342,853) $ (25,277,347)

The District's net position increased during the most recent fiscal year. The majority of the increase represents the extent to which ongoing program revenues exceeded the cost of operations and depreciation expense.

Key elements of the change in net position are reflected in the following table:

CHANGES IN NET POSlllON FOR THE FISCAL YEAR ENDED SEPTEMBER 30,

2017 2016 Re-.enues: Program re-.enues

Charges for sef\1ces $ 3,370,064 $ 3,229,152 Operating grants and contributions 14,574 4,059 Capital grants and contributions 210 53

General re-.enues Unrestricted in-.estment earnings 30 30

Total re-.enues 3,384,878 3,233,294 Expenses:

General go-.emment 102,626 101,616 Maintenance and operations 473,406 484,879 Interest 1,874,352 1,919,529 Bond issue costs 686

Total expenses 2,450,384 2,506,710 Change in net position 934,494 726,584 Net position - beginning, prel.iously stated (25,277,347) (26,054,331) Prior period adjustment 50,400 Net position - beginning, restated (25,277,347) (26,003,931) Net position - ending $ (24,342,853) $ (25,277,347)

As noted above and in the statement of activities, the cost of all governmental activities during the fiscal year ended September 30, 2017 was $2,450,384. The costs of the District's activities were primarily funded by program revenues. Program revenues are comprised primarily of assessments. The majority of the decrease in expenses related to decreased interest costs due to lower bond principal balances over the lives of the bonds.

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GENERAL BUDGETING HIGHLIGHTS

An operating budget was adopted and maintained by the governing board for the District pursuant to the requirements of Florida Statutes. The budget is adopted using the same basis of accounting that is used in preparation of the fund financial statements. The legal level of budgetary control, the level at which expenditures may not exceed budgeted amounts, is in the aggregate. Any budget amendments that increase the aggregate budgeted appropriations must be approved by the Board of Supervisors. Actual general fund expenditures did not exceed appropriations for the fiscal year ended September 30, 2017.

CAPITAL ASSETS AND DEBT ADMINISTRATION

Capital Assets

At September 30, 2017, the District had $14,272,267 invested in capital assets for its governmental activities. In the government-wide financial statements, depreciation of $4,258,349 has been taken, which resulted in a net book value of $10,013,918. More detailed information about the District's capital assets is presented in the notes of the financial statements.

Capital Debt

At September 30, 2017, the District had $36,720,000 in Bonds outstanding. More detailed information about the District's capital debt is presented in the notes of the financial statements.

ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS

The District does not anticipate any major projects or significant changes to its infrastructure maintenance program for the subsequent fiscal year. In addition, it is anticipated that the general operations of the District will remain fairly constant.

CONTACTING THE DISTRICT'S FINANCIAL MANAGEMENT

This financial report is designed to provide our citizens, land owners, customers, investors and creditors with a general overview of the District's finances and to demonstrate the District's accountability for the financial resources it manages and the stewardship of the facilities it maintains. If you have questions about this report or need additional financial information, contact the Bartram Park Community Development District's Finance Department at 475 West Town Place, Suite 114, St. Augustine, Florida 32092.

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STATEMENT OF NET POSITION SEPTEMBER 30, 2017

Governmental Activities

ASSETS Cash $ 103,767 Investments 19,691 Prepaid 25,729 Restricted assets:

Investments 2,567,266 Capital assets:

Nondepreciable 70,100 Depreciable, net 9,943,818

Total assets 12,730,371

DEFERRED OUTFLOWS OF RESOURCES Deferred charge on refunding 204,592

Total deferred outflom of resources 204,592

LIABILITIES Accounts payable 1,682 Accrued interest payable 757,428 Non-current liabilities:

Due within one year 1,235,000 Due in more than one year 35,283,706

Total liabilities 37,277,816

NET POSITION Net investment in capital assets (26,258,071) Restricted for debt service 1,767,713 Unrestricted 147,505

Total net position $ (24,342,853)

See notes to the financial statements

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STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017

Program Revenues Charges Operating

for Grants and Capital

Grants and Functions/Programs Primary government:

Governmental activities: General government Maintenance and operations Interest on long-term debt

Total governmental activities

$

E~enses Services Contributions Contributions

102,626 $ 102,626 $ - $ 473,406 27,437 210

1,874,352 3,240,001 14,574 -2,450,384 3,370,064 14,574 210

General revenues: Unrestricted investment earnings

Total general revenues Change in net position Net position - beginning Net position - ending


Net (Expense) Revenue and

Changes in Net Position

$

$

Governmental Activities

(445,759) 1,380,223

934,464

30 30

934,494 {25,277,347} {24,342,853}

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BALANCE SHEET GOVERNMENTAL FUNDS

SEPTEMBER 30, 2017

Major Funds Total Debt Capital Governmental

General Service Fund Projects Fund Funds ASSETS Cash $ 103,767 $ $ $ 103,767 Investments 19,691 2,525,141 42,125 2,586,957 Prepaids 25,729 25,729

Total assets $ 149,187 $ 2,525,141 $ 42,125 $ 2,716,453

LIABILlllES AND FUND BALANCES Liabilities:

Accounts payable $ 1,682 $ $ $ 1,682 Total liabilities 1,682 1,682

Fund balances: Nonspendable:

Prepaids 25,729 25,729 Restricted for:

Debt service 2,525,141 2,525,141 Capital projects 42,125 42,125

Unassigned 121,776 121,776 Total fund balances 147,505 2,525,141 42,125 2,714,771

Total liabilities and fund balances $ 149,187 $ 2,525,141 $ 42,125 $ 2,716,453


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RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION

SEPTEMBER 30, 2017

Fund balance - governmental funds

Amounts reported for governmental activities in the statement of net position are different because:

Capital assets used in governmental activities are not financial resources and, therefore, are not reported as position in the governmental funds. The statement of net position includes those capital assets, net of any accumulated depreciation, in the net position of the government as a whole.

Cost of capital assets Accumulated depreciation

Deferred charges on refunding of long-term debt are sho\Ml as deferred outflows/inflows of resources in the government-wide financial statements; however, this amount is expensed in the governmental fund financial statements.

Liabilities not due and payable from current available resources are not reported as liabilities in the governmental fund statements. All liabilities, both current and long-term, are reported in the government-wide financial statements.

14,272,267 (4,258,349)

(757,428)

$ 2,714,771

10,013,918

204,592

Accrued interest payable Bonds payable (36,518,706) (37,276,134)

Net position of governmental activities $ (24,342,853)


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STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017

Major Funds Total Debt Capital Governmental

General Service Projects Funds REVENUES Assessments $ 130,063 $ 3,240,001 $ $ 3,370,064 Interest income 30 14,574 210 14,814

Total revenues 130,093 3,254,575 210 3,384,878

EXPENDITURES Current:

General government 102,626 102,626 Debt service:

Principal 1,546,142 1,546,142 Interest 1,773,555 1,773,555

Total expenditures 102,626 3,319,697 3,422,323

Excess (deficiency) of revenues over (under) expenditures 27,467 (65,122) 210 (37,445)

OTHER FINANCING SOURCES (USES) lnterfund transfers in (out) 210 {210)

Total other financing sources (uses) 210 {210)

Net change in fund balances 27,467 (64,912) (37,445)

Fund balances - beginning 120,038 2,590,053 42,125 2,752,216

Fund balances - ending $ 147,505 $ 2,525,141 $ 42,125 $ 2,714,771


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RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES


Net change in fund balances - total governmental funds $ (37,445)

Amounts reported for governmental activities in the statement of activities are different because:

Depreciation on capital assets is not recognized in the governmental fund financial statements but is reported as an expense in the statement of activities. (473,406)

Repayment of long-term liabilities are reported as expenditures in the governmental fund statements but such repayments reduce liabilities in the statement of net position and are eliminated in the statement of activities. 1,546,142

Expenses reported in the statement of activities that do not require the use of current financial resources are not reported as expenditures in the funds. The details of the differences are as follo\NS:

Amortization of deferred amount on refunding (11,473) Amortization of original issue discount/premium (11,503)

Accreted interest on long-term liabilities is recorded in the statement of activities but not in the fund financial statements. (20,086)

The change in accrued interest on long-term liabilities bet\Neen the current and prior fiscal year is recorded in the statement of activities but not in the fund financial statements. {57,735}

Change in net position of governmental activities $ 934,494


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NOTES TO FINANCIAL STATEMENTS

NOTE 1 - NATURE OF ORGANIZATION AND REPORTING ENTITY

Bartram Park Community Development District ("District") was created on February 2, 2005 by Ordinance 2004-1280-E of the City of Jacksonville, Florida, pursuant to the Uniform Community Development District Act of 1980, otherwise known as Chapter 190, Florida Statutes. The Act provides among other things, the power to manage basic services for community development, power to borrow money and issue bonds, and to levy and assess non-ad valorem assessments for the financing and delivery of capital infrastructure.

The District was established for the purposes of financing and managing the acquisition, construction, maintenance and operation of a portion of the infrastructure necessary for community development within the District.

The District is governed by the Board of Supervisors ("Board"), which is composed of five members. The Supervisors are elected by qualified electors as such term is defined in chapter 190, Florida Statutes. The Board of Supervisors of the District exercise all powers granted to the District pursuant to Chapter 190, Florida Statutes.

The Board has the final responsibility for: 1. Allocating and levying assessments. 2. Approving budgets. 3. Exercising control over facilities and properties. 4. Controlling the use of funds generated by the District. 5. Approving the hiring and firing of key personnel. 6. Financing improvements.

The financial statements were prepared in accordance with Governmental Accounting Standards Board ("GASB") Statements. Under the provisions of those standards, the financial reporting entity consists of the primary government, organizations for which the District Board of Supervisors is considered to be financially accountable, and other organizations for which the nature and significance of their relationship with the District are such that, if excluded, the financial statements of the District would be considered incomplete or misleading. There are no entities considered to be component units of the District; therefore, the financial statements include only the operations of the District.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Government-Wide and Fund Financial Statements The basic financial statements include both government-wide and fund financial statements.

The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non-fiduciary activities of the primary government. For the most part, the effect of interfund activity has been removed from these statements.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment. (Operating-type special assessments for maintenance and debt service are treated as charges for services.); and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Other items not included among program revenues are reported instead as general revenues.

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Measurement Focus, Basis of Accounting and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Assessments are recognized as revenues in the year for which they are levied. Grants and similar items are to be recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures are recorded only when payment is due.

Assessments Assessments are non-ad valorem assessments on benefitted property within the District. Operating and Maintenance Assessments are based upon an adopted budget and levied annually. Debt Service Assessments are levied when Bonds are issued and certified for collection on an annual basis. The District may collect assessments directly or utilize the uniform method of collection (Chapter 197 .3632, Florida Statutes). Direct collected assessments are due as determined by annual assessment resolution adopted by the Board of Supervisors. Assessments collected under the uniform method are mailed by County Tax Collector on November 1 and due on or before March 31 of each year. Property owners may prepay a portion or all of the Debt Service Assessments on their property subject to various provisions in the Bond documents.

Assessments and interest associated with the current fiscal period are considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. The portion of assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period.

The District reports the following major governmental funds:

General Fund The general fund is the general operating fund of the District. It is used to account for all financial resources except those required to be accounted for in another fund.

Debt Service Fund The debt service funds are used to account for and report financial resources that are restricted, committed, or assigned to expenditure for principal and interest on debt.

Capital Projects Fund This fund accounts for the financial resources that are restricted, committed, or assigned to expenditure for capital outlays, including the acquisition or construction of capital assets within the District.

As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements.

When both restricted and unrestricted resources are available for use, it is the government's policy to use restricted resources first for qualifying expenditures, then unrestricted resources as they are needed.

Assets, Liabilities and Net Position or Equity

Restricted Assets These assets represent cash and investments set aside pursuant to Bond covenants or other contractual restrictions.

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Assets, Liabilities and Net Position or Equity (Continued)

Deposits and Investments The District's cash and cash equivalents are considered to be cash on hand and demand deposits (interest and non-interest bearing).

The District has elected to proceed under the Alternative Investment Guidelines as set forth in Section 218.415 (17) Florida Statutes. The District may invest any surplus public funds in the following:

a) The Local Government Surplus Trust Funds, or any intergovernmental investment pool authorized pursuant to the Florida lnterlocal Cooperation Act;

b) Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency;

c) Interest bearing time deposits or savings accounts in qualified public depositories; d) Direct obligations of the U.S. Treasury.

Securities listed in paragraph c and d shall be invested to provide sufficient liquidity to pay obligations as they come due.

The District records all interest revenue related to investment activities in the respective funds. Investments are measured at amortized cost or reported at fair value as required by generally accepted accounting principles.

Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements.

Capital Assets Capital assets which include property, plant and equipment, and infrastructure assets (e.g., roads, sidewalks and similar items) are reported in the government activities columns in the government-wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed.

Property, plant and equipment of the District are depreciated using the straight-line method over the following estimated useful lives:

Assets

Infrastructure - roadways

Years

30 years

In the governmental fund financial statements, amounts incurred for the acquisition of capital assets are reported as fund expenditures. Depreciation expense is not reported in the governmental fund financial statements.

Refundings of Debt For current refundings and advance refundings resulting in the defeasance of debt, the difference between the reacquisition price and the net carrying amount of the old debt is reported as a deferred outflow of resources and recognized ratably as a component of interest expense over the remaining life of the old debt or the life of the new debt, whichever is shorter. In connection with the refunding, $11,473 was recognized as a component of interest expense in the current fiscal year.

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Unearned Revenue Governmental funds report unearned revenue in connection with resources that have been received, but not yet earned.

Long-Term Obligations In the government-wide financial statements long-term debt and other long-term obligations are reported as liabilities in the statement of net position. Bond premiums and discounts are deferred and amortized over the life of the Bonds. Bonds payable are reported net of applicable premiums or discounts. Bond issuance costs are expensed when incurred.

In the fund financial statements, governmental fund types recognize premiums and discounts, as well as issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

Deferred Outflows/Inflows of Resources Deferred outflows of resources represent a consumption of net position that applies to future reporting period(s). For example, the District would record deferred outflows of resources on the statement of net position related to debit amounts resulting from current and advance refundings resulting in the defeasance of debt (i.e. when there are differences between the reacquisition price and the net carrying amount of the old debt).

Deferred inflows of resources represent an acquisition of net position that applies to future reporting period(s). For example, when an asset is recorded in the governmental fund financial statements, but the revenue is unavailable, the District reports a deferred inflow of resources on the balance sheet until such times as the revenue becomes available.

Fund Equity/Net Position In the fund financial statements, governmental funds report non spendable and restricted fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Assignments of fund balance represent tentative management plans that are subject to change.

The District can establish limitations on the use of fund balance as follows:

Committed fund balance -Amounts that can be used only for the specific purposes determined by a formal action (resolution) of the Board of Supervisors. Commitments may be changed or lifted only by the Board of Supervisors taking the same formal action (resolution) that imposed the constraint originally. Resources accumulated pursuant to stabilization arrangements sometimes are reported in this category.

Assigned fund balance - Includes spendable fund balance amounts established by the Board of Supervisors that are intended to be used for specific purposes that are neither considered restricted nor committed. The Board may also assign fund balance as it does when appropriating fund balance to cover differences in estimated revenue and appropriations in the subsequent year's appropriated budget. Assignments are generally temporary and normally the same formal action need not be taken to remove the assignment.

The District first uses committed fund balance, followed by assigned fund balance and then unassigned fund balance when expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used.

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Fund Equity/Net Position (Continued) Net position is the difference between assets and deferred outflows of resources less liabilities and deferred inflows of resources. Net position in the government-wide financial statements are categorized as net investment in capital assets, restricted or unrestricted. Net investment in capital assets represents net position related to infrastructure and property, plant and equipment. Restricted net position represents the assets restricted by the District's Bond covenants or other contractual restrictions. Unrestricted net position consists of the net position not meeting the definition of either of the other two components.

Other Disclosures

Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates.

NOTE 3- BUDGETARY INFORMATION

The District is required to establish a budgetary system and approve an Annual Budget. Annual Budgets are adopted on a basis consistent with generally accepted accounting principles for all governmental funds. All annual appropriations lapse at fiscal year end.

The District follows these procedures in establishing the budgetary data reflected in the financial statements.

a) Each year the District Manager submits to the District Board a proposed operating budget for the fiscal year commencing the following October 1.

b) Public hearings are conducted to obtain public comments. c) Prior to October 1, the budget is legally adopted by the District Board. d) All budget changes must be approved by the District Board. e) The budgets are adopted on a basis consistent with generally accepted accounting principles. f) Unused appropriation for annually budgeted funds lapse at the end of the year.

NOTE 4 - DEPOSITS AND INVESTMENTS

Deposits The District's cash balances were entirely covered by federal depository insurance or by a collateral pool pledged to the State Treasurer. Florida Statutes Chapter 280, "Florida Security for Public Deposits Act", requires all qualified depositories to deposit with the Treasurer or another banking institution eligible collateral equal to various percentages of the average daily balance for each month of all public deposits in excess of any applicable deposit insurance held. The percentage of eligible collateral (generally, U.S. Governmental and agency securities, state or local government debt, or corporate bonds) to public deposits is dependent upon the depository's financial history and its compliance with Chapter 280. In the event of a failure of a qualified public depository, the remaining public depositories would be responsible for covering any resulting losses.

Investments The District's investments were held as follows at September 30, 2017:

Amortized cost Credit Risk Maturities Fidelity lmestment Money Market Treasury 695 $ 2,567,266 Not available Not available

us Bank Mmkt 5 - Ct 19,691 N/A N/A $ 2,586,957

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NOTE 4 - DEPOSITS AND INVESTMENTS (Continued)

Investments (Continued) Credit risk - For investments, credit risk is generally the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Investment ratings by investment type are included in the preceding summary of investments.

Concentration risk- The District places no limit on the amount the District may invest in any one issuer.

Interest rate risk- The District does not have a formal policy that limits investment maturities as a means of managing exposure to fair value losses arising from increasing interest rates.

However, the Bond Indenture limits the type of investments held using unspent proceeds.

Fair Value Measurement-When applicable, the District measures and records its investments using fair value measurement guidelines established in accordance with GASB Statements. The framework for measuring fair value provides a fair value hierarchy that prioritizes the inputs to valuation techniques.

These guidelines recognize a three-tiered fair value hierarchy, in order of highest priority, as follows: • Level 1: Investments whose values are based on unadjusted quoted prices for identical investments

in active markets that the District has the ability to access; • Level 2: Investments whose inputs - other than quoted market prices - are observable either directly

or indirectly; and, • Level 3: Investments whose inputs are unobservable.

The fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the entire fair value measurement. Valuation techniques used should maximize the use of observable inputs and minimize the use of unobservable inputs.

Money market investments that have a maturity at the time of purchase of one year or less and are held by governments other than external investment pools should be measured at amortized cost. Accordingly, the District's investments have been reported at amortized cost above.

NOTE 5 - CAPITAL ASSETS

Capital assets activity for the fiscal year ended September 30, 2017 was as follows:

Beginning Ending Balance Additions Reductions Balance

Go1.emmental acti1.1ties Capital assets, not being depreciated

Infrastructure in progress $ 70,100 $ $ $ 70,100 Total capital assets, not being depreciated 70,100 70,100

Capital assets, being depreciated Infrastructure - roadways 14,202,167 14,202,167

Total capital assets, being depreciated 14,202,167 14,202,167

Less accumulated depreciation for: Infrastructure - roadways 3,784,943 473,406 4,258,349

Total accumulated depreciation 3,784,943 473,406 4,258,349

Total capital assets, being depreciated, net 10,417,224 (473,406) 9,943,818

Go1.emmental acti1.1ties capital assets, net $ 10,487,324 $ (473,406) $ $ 10,013,918

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NOTE 5 - CAPITAL ASSETS (Continued)

The infrastructure intended to serve the District has been estimated at a total cost of approximately $87,230,000. The infrastructure will include roadways and other transportation improvements, stormwater management system and recreation facilities. In addition, the project will include offsite roadways, irrigation, stormwater management system and water and sewer facilities that will be owned and maintained by others. A portion of the project costs have been financed with the proceeds from the issuance of the Series 2005 and Series 2012 Bonds with the remainder to be funded by the Developer and conveyed to the District. Upon completion, certain assets were to be conveyed to others. In prior fiscal years, the District has conveyed roadways valued at approximately $6.1 million and the stormwater management system to other entities. Also, the District conveyed approximately $11.9 million of land to another entity in a prior fiscal year.

Depreciation expense was charged to the maintenance and operations function.

NOTE 6 - LONG TERM LIABILITIES

Series 2012 On June 6, 2012, the District issued $25,060,000 of Replacement Bonds, Series 2012 consisting of $5,075,000 Convertible Capital Appreciation Special Assessment Bonds, Series 2012-1 due on May 1, 2037 with a fixed interest rate of 5.875%, $3,545,000 Special Assessment Bonds, Series 2012-2 due on May 1, 2037 with a fixed interest rate of 5.4%, $4,960,000 Convertible Capital Appreciation Special Assessment Bonds, Series 2012-3 due on May 1, 2037 with a fixed interest rate of 5.875%, $8,050,000 Special Assessment Bonds, Series 2012-4 due on May 1, 2037 with a fixed interest rate of 5.4%, and $3,430,000 Convertible Capital Appreciation Special Assessment Bonds, Series 2012-5 due on May 1, 2037 with a fixed interest rate of 5.8%. The Bonds were issued to exchange approximately $28,945,000 of the District's outstanding Special Assessment Bonds, Series 2006 for newly issued Bonds. Each Series relates to specific tracts of land which have various landowners.

The Series 2012-1, 2012-3, and 2012-5 Convertible Capital Appreciation Bonds will accrete interest thus increasing the outstanding principal balance over the time which the Bonds are issued to the time of the first principal payment. The Bonds will become fully accreted at the time of the first principal payment, the conversion date, as follows:

Principal Initial Principal Com.ersion Date Interest Payments Interest Payments

Series Amount Accreted Value Rate Commencing Commencing 2012-1 $ 4,415,808 $ 5,075,000 5.875% May 1, 2015 May 1, 2015 2012-2 3,545,000 3,545,000 5.400% May 1, 2013 NO\ember 1, 2012 2012-3 4,072,954 4,960,000 5.875% May 1, 2016 May 1, 2016 2012-4 8,050,000 8,050,000 5.400% May1,2013 No-.ember 1, 2012 2012-5 2,666,654 3,430,000 5.800% May 1, 2017 May 1, 2017

$ 22,750,416 $ 25,060,000

The Series 2012 Bonds are subject to redemption at the option of the District prior to maturity. The Series 2012 Bonds are subject to extraordinary mandatory redemption prior to maturity in the manner determined by the Bond Registrar if certain events occurred as outlined in the Bond Indenture. This occurred during the current fiscal year as the District collected assessments from lot closings and prepaid $175,000 of the Series 2012-3 Bonds.

The Bond Indenture established a debt service reserve requirement as well as other restrictions and requirements relating principally to the use of proceeds to pay for the infrastructure improvements and the procedures to be followed by the District on assessments to property owners. The District agrees to levy special assessments in annual amounts adequate to provide payment of debt service and to meet the reserve requirements. The District was in compliance with the requirements at September 30, 2017.

In a prior fiscal year, Tract 24, which had been deeded to a special purpose entity ("SPE"), was sold to a third party buyer. In connection with the sale of the land $3,600,000 of the Series 2012-4 Bonds were cancelled.

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NOTE 6 - LONG TERM LIABILITIES (Continued)

Series 2015 On July 30, 2015, the District issued $18,830,000 of Special Assessment Revenue Refunding Bonds Series 2015 consisting of $15,210,000 Series 2015-1 and $3,620,000 Series 2015-2. The Series 2015-1 and Series 2015-2 are further consisted of the following Bonds:

Payment Series Tenns Par Amount Maturity Date Interest Rate 2015-1 Serial Bonds $ 4,770,000 May 1, 2023 1.00% - 3.250% 2015-1 Term Bonds 4,540,000 May 1, 2029 4.25% 2015-1 Tenn Bonds 5,900,000 May 1, 2035 4.50% 2015-2 Tenn Bonds 625,000 May 1, 2020 4.00% 2015-2 Tenn Bonds 770,000 May 1, 2025 4.50% 2015-2 Term Bonds 2,225,000 May 1, 2035 5.00%

The Series 2015 Bonds are subject to redemption at the option of the District prior to their maturity. The Bonds are subject to extraordinary mandatory redemption prior to their selected maturity in the manner determined by the Bond Registrar if certain events occurred as outlined in the Bond Indenture. This occurred during the current fiscal year as the District collected assessments from lot closings and prepaid $150,000 of the Series 2015-1 Bonds and $35,000 of the Series 2015-2 Bonds.

The Bond Indenture established a debt service reserve requirement as well as other restrictions and requirements relating principally to the use of proceeds to pay for the infrastructure improvements and the procedures to be followed by the District on assessments to property owners. The District agrees to levy special assessments in annual amounts adequate to provide payment of debt service and to meet the reserve requirements. The District was in compliance with the requirements at September 30, 2017.

Long-term Debt Activitv Changes in long-term liability activity for the fiscal year ended September 30, 2017 were as follows:

Beginning Ending Due Within Balance Additions Reductions Balance One Year

Go\emmental acti\ities Bonds payable:

Series 2012 $ 17,796,558 $ $ 686,142 $ 17,110,416 $ 545,000 Plus accreted interest on Series 2012 2,289,498 20,086 2,309,584 Series 2015 18,160,000 860,000 17,300,000 690,000

Less: Original issue discount 212,797 11,503 201,294 Total $ 38,033,259 $ 20,086 $ 1,534,639 $ 36,518,706 $ 1,235,000

At September 30, 2017, the scheduled debt service requirements on the long-term debt were as follows:

Go\emmental Acti\ities Year ending

September 30: Principal Interest Total 2018 $ 1,235,000 $ 1,828,109 $ 3,063,109 2019 1,275,000 1,780,884 3,055,884 2020 1,340,000 1,730,101 3,070,101 2021 1,405,000 1,674,584 3,079,584 2022 1,455,000 1,612,821 3,067,821

2023-2027 8,375,000 6,974,308 15,349,308 2028-2032 10,775,000 4,644,558 15,419,558 2033-2037 10,860,000 1,630,939 12,490,939

Total $ 36,720,000 $ 21,876,304 $ 58,596,304

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NOTE 7 - DEVELOPER TRANSACTIONS

The Developer owned a portion of land within the District for part of the current fiscal year; therefore, assessment revenues in the general and debt service funds include the assessments levied on those lots owned by the Developer. As of September 30, 2017, the Developer no longer owns any assessable land within the District.

NOTE 8 - CONCENTRATION

A significant portion of the District's activity is dependent upon the continued involvement of several significant landowners, the loss of which could have a material adverse effect on the District's operations.

NOTE 9- MANAGEMENT COMPANY

The District has contracted with a management company to perform management advisory services, which include financial and accounting services. Certain employees of the management company also serve as officers of the District. Under the agreement, the District compensates the management company for management, accounting, financial reporting, computer and other administrative costs.

NOTE 10- RISK MANAGEMENT

The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters. The District has obtained commercial insurance from independent third parties to mitigate the costs of these risks; coverage may not extend to all situations. There were no settled claims during the past three years.

NOTE 11 - SUBSEQUENT EVENTS

Bond Payments Subsequent to fiscal year end, the District prepaid a total of $25,000 of the Series 2012-4 Bonds. The prepayments were considered extraordinary mandatory redemptions as outlined in the Bond Indenture.

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SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL FUND


Budgeted Amounts Actual

Original & Final Amounts

REVENUES Assessments $ 129,683 $ 130,063 Interest 30

Total revenues 129,683 130,093

EXPENDITURES Current:

General government 129,683 102,626

Total expenditures 129,683 102,626

Excess ( deficiency) of revenues over (under) expenditures $ 27,467

Fund balance- beginning 120,038

Fund balance - ending $ 147,505

See notes to required supplementary information

Variance with Final Budget -

Positive (Negative}

$ 380 30

410

27,057 27,057

$ 27,467

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NOTES TO REQUIRED SUPPLEMENTARY INFORMATION

The District is required to establish a budgetary system and an approved Annual Budget for the general fund. The District's budgeting process is based on estimates of cash receipts and cash expenditures which are approved by the Board. The budget approximates a basis consistent with accounting principles generally accepted in the United States of America (generally accepted accounting principles).

The legal level of budgetary control, the level at which expenditures may not exceed budget is in the aggregate. Any budget amendments that increase the aggregate budgeted appropriations must be approved by the Board of Supervisors. Actual general fund expenditures did not exceed appropriations for the fiscal year ended September 30, 2017.

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j

Grau & Associates CERTIFIE D PUULI C ACC OUN TANTS

2700 North Military Trail • Suite 350 Boca Raton, Florida 33431 (561) 994-9299 • (800) 299-4728 Fax (561) 994-5823 www .graucpa .com

INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT

OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

To the Board of Supervisors Bartram Park Community Development District City of Jacksonville , Florida

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities and each major fund of Bartram Park Community Development District, City of Jacksonville, Florida (the "District") as of and for the fiscal year ended September 30, 2017, and the related notes to the financial statements, which collectively comprise the District's basic financial statements, and have issued our opinion thereon dated March 27, 2018 .

Internal Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered the District's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District's internal control. Accordingly , we do not express an opinion on the effectiveness of the District's internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees , in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficienc ies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis . A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness , yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to ident ify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However , material weaknesses may exist that have not been identified .

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the District's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts . However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion . The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

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Purpose of this Report

The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

March 27, 2018

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Grau & Associates CERT IFIE D PUB LIC ACCO UNTANTS

2700 North Military Trail • Suite 350 Boca Raton, Florida 33431 (561) 994-9299 • (800) 299-4728 Fax (561) 994-5823 www .graucpa.com

INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH THE REQUIREMENTS OF SECTION 218.415, FLORIDA STATUTES, REQUIRED BY RULE 10.556(10) OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA

To the Board of Supervisors Bartram Park Community Development District City of Jacksonville, Florida

We have examined Bartram Park Community Development District, City of Jac

BARTRAM PARI

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